The news of Binance’s 1,000 employee layoffs causes the price of bitcoin to collapse.
The news of Binance’s 1,000 employee layoffs causes the price of bitcoin to collapse.
Following the news of the layoffs at Binance, the price of bitcoin dropped by more than 2.7%. Bitcoin prices plummeted on Saturday after it was revealed that Binance, a prominent cryptocurrency exchange, has let go of up to 1,000 employees.
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| Source : binance |
After the news broke late on Friday, as first reported by the Wall Street Journal, Bitcoin lost approximately $30,000 each token. Following the news of the layoffs at Binance, the price of bitcoin dropped by more than 2.7%. According to the WSJ story, Binance could fire up to one-third of its personnel, which was close to 8,000 people before layoffs began.
A representative for Binance told Forbes that as the firm gets ready for the “next major bull cycle,” it has “become clear” to it that it “needs to focus on talent density across the organization to ensure we remain nimble and dynamic.”
Both Binance and Coinbase are being sued separately by the US Securities and Exchange Commission (SEC). The US regulator filed a lawsuit against Binance, Changpeng Zhao, its CEO, as well as BAM Trading and BAM Management last month for allegedly mishandling funds and lying to regulators.The regulator accused the defendants of 13 offenses in a federal lawsuit.
Later, to allow Binance to continue operating in the US, a US judge pushed the SEC to strike a deal with Binance. Additionally, Binance was compelled to immediately stop all offers of virtual currency services in Belgium by the Financial Services and Markets Authority (FSMA) of Belgium.
According to the FSMA, Binance “offers and provides exchange services between virtual currencies and legal currencies, as well as custody wallet services, in Belgium for nationals of countries outside the European Economic Area.”
Binance has been ordered by the FSMA to stop offering or supplying any and all of these services in Belgium, effective immediately.
